No surprises from the final euro-zone inflation numbers for May: Year over year inflation stands at 0.5%, and core inflation at 0.7%. Official expectations stood on a confirmation of the flash numbers: 0.5% for CPI and 0.7% for Core CPI. However, data coming from several countries was quite weak, and suggested a downgrade.
EUR/USD traded in the lower part of the range, around 1.3520, before the publication. The pair is ticking higher.
In previous months, we have often seen changes in the final reads. Not all countries provide data for the initial publication. With the lower levels of the euro in June, perhaps inflation will budge back up. However, Draghi and his colleagues at the ECB would like to see inflation rise towards the 2% target, and this is still far off.
Tomorrow there is an interesting event. See how to trade the German ZEW figure with EURUSD.
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